Ruling and Opposition Parties Join Forces to Establish Secure Jeonse and Monthly Rent Trust... HUG to Hold Policy Forum

[Financial News] The ruling and opposition parties will work together on a policy initiative aimed at stabilizing the jeonse and monthly rent markets.
The Korea Housing & Urban Guarantee Corporation (HUG) said on the 15th that it will hold a policy forum titled “Policy Forum on Stabilizing the Jeonse and Monthly Rent Markets” on the 16th.
The forum was organized to explore the tasks and future development of the Secure Jeonse and Monthly Rent Trust needed for it to become firmly established in the market. It is considered a rare example of bipartisan cooperation, as the ruling and opposition parties are joining forces to find solutions for a policy initiative led by a public institution.
HUG, which oversees the initiative, lawmakers from both parties, and experts from academia and the legal sector will participate in the forum. Bok Ki-wang of the Democratic Party of Korea and Jung-Jae Kim of the People Power Party, the ruling and opposition floor leaders on the Land, Infrastructure and Transport Committee of the National Assembly, will attend. Civic groups and the housing industry will also take part, making the forum an opportunity to hear a broad range of views from stakeholders and the public.
The Secure Jeonse and Monthly Rent Trust is a new rental model that provides tenants with secure jeonse housing and landlords with stable monthly income, while using the funds to supply housing. It can help prevent a rapid shift toward monthly rentals and fundamentally block jeonse fraud. The benefits extend not only to individual landlords but also to corporate and public landlords. HUG, rather than the landlord, directly deposits and manages the jeonse deposits paid by tenants, returning them to the tenants when the contracts end. The core of the model is to use the accumulated deposits for housing supply, creating a virtuous cycle among tenants, landlords, and the housing market.
At the forum, HUG President In-ho Choi will explain the initiative’s key details and future direction under the topic “The Secure Jeonse and Monthly Rent Trust through the HUG Jeonse and Monthly Rent Stabilization Organization.” The participants will then discuss ways to improve the initiative’s effectiveness, including its legal and institutional foundations, measures to encourage voluntary landlord participation, the stable management of jeonse deposits, and links to housing supply. The session will be chaired by Mi-yoon Jin, a professor at Myongji University’s Graduate School of Real Estate.
President Choi said, "This forum will be a meaningful opportunity for the ruling and opposition parties and experts from various fields to work together to seek solutions under the shared goal of ensuring housing stability for the public." He added, "We will faithfully reflect the diverse opinions from all sectors in the implementation of the initiative and make thorough preparations so that the Secure Jeonse and Monthly Rent Trust can become firmly established in the market without setbacks."

[email protected] Jung Kyung-soo Reporter